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China’s export price of TiO2 to remain high in 2018

2018/1/5 17:06:12

Supported by tight
supply, rising production costs and increasing demand from emerging economies,
China’s TiO2 export price is expected to remain high at the beginning of 2018.
Get you import and export data of Chinese TiO2 or thousands of other
commodities at Tranalysis.

In
the beginning of this decade, China became the leading TiO2 producer in the
world. Since then, the country is decisively influencing the world market of
this important raw material for coatings, painting, plastics, and more
downstream industries. China’s imports and exports of TiO2 is affecting all
parts of the world.

According
to market experts of TiO2, the price, which witnessed some high trend in 2017,
will continue to rise till early or mid of 2018 and then remain on a high
level. This development is supported by the balancing of demand and supply of
TiO2 in the world market. As a fact, many big players have announced prices
rises in 2017 already, which is likely to continue throughout the year and also
in the beginning of 2018.

The
booming living standard in Asian countries like China is significantly causing
the high demand for coatings and packaging with drives TiO2 demand up. Hence,
Asia will remain the most important market for TiO2 in the near future.

Export volume of China's TiO2 by destination, Oct. 2016–Oct. 2017

Source: Tranalysis & China Customs

While
the international supply of titanium dioxide is remaining tight, Asia’s TiO2
market continues the booming trend it shows since the beginning of 2016. For
example, China leads the global demand for titanium dioxide in the construction
sector, with other Asian regions, such as India, Southeast Asia, and American
regions, namely Brazil and Mexico, not far behind.

China,
the most important TiO2 supplier in Asia, has seen especially tight supply, due
to the environmental inspections and measurement by the government, which
forces manufacturers to limit and cut the production in order to ensure
environmental protection. Additionally, the price of Chinese TiO2 increased not
only by tight supply but also production costs, which have seen a rising trend
due to higher costs of raw materials like ilmenite as well as higher
transportation costs.

China’s
TiO2 trend in October 2017

According
to the latest trade data, China exported almost 73 thousand tonnes of TiO2 in
October 2017. The increased export volume was the result of recovered operating
rates as well as inventories of TiO2 in China. Since the price of TiO2 in
China went down slightly after August, Chinese products rose in
demand of overseas customers and export grew.

In
September 2017, the top 5 exporters exported almost 31 thousand tonnes of TiO2,
accounting for slightly less of half of the total TiO2 export amount. Sichuan
Lomon continued to rank the first among all Chinese exporters, exporting more
than 12 thousand tonnes of TiO2, another small rise compared to the previous
months.

Export prices of key Chinese TiO2 exporters, Oct. 2017, USD/t

Source: Tranalysis & China Customs

In
terms of export destinations, China exported most of its TiO2 to Europe,
followed by a significant export shipping to the Middle East and South America,
4,701 tonnes to North America, 2,230 tonnes to Africa and 2,230 tonnes to
Asia-Pacific region.

General
economic outlook

China
announced to keep the economic growth plan for 2018 as the same number as in
2017, 6.5%, according to Reuters. The main target of the government is hereby
to reduce the debt risks of the country while keeping the economy stable in the
long run. Analysts expect final numbers will show the economy grew around 6.8%
in 2017

In
2018, the Belt and Road initiative by President Xi will play a decisive role
again in the infrastructure development of trading partners in East Europe, the
Middle East, Central Asia, as well as South-East Asia. More projects are
planned by the government to support the right conditions for trade along the
participating countries.

Hence,
Chinese TiO2 will continue to play a decisive role in the world market and the
emerging countries in Asia and America are the main importing nations for the
raw material.

About the article

The
trade information from this article comes from Tranalysis, an import and export
analysis provider for China and other countries.

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